{"id":901041,"date":"2023-04-11T15:01:25","date_gmt":"2023-04-11T21:01:25","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=901041"},"modified":"2023-04-11T15:01:36","modified_gmt":"2023-04-11T21:01:36","slug":"prefabricated-construction-contract-template","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/prefabricated-construction-contract-template\/","title":{"rendered":"A New Template Contract for Prefabricated Construction"},"content":{"rendered":"\n

Choity Khan | Construction Law Zone<\/a><\/p>\n\n\n\n

Over the past several years, modular construction has been on the rise and this method of construction has been used in the creation of health care facilities, education facilities, and apartment buildings. With the increased demand for housing, the popularity and use of modular construction has grown even more rapidly throughout the industry. In response to modular construction\u2019s growing popularity, in 2020, the ConsensusDOCS Coalition released the first industry-standard contract document in this area\u2014the ConsensusDOCS 753 \u2013 Standard Subcontract for Prefabricated Construction.\u00a0 On February 2, 2023, the ConsensusDOCS Coalition announced the publication of the ConsensusDOCS 253 Prime Agreement and General Conditions for an owner to procure prefabricated construction materials and components. This is the industry\u2019s first standard prime-level contract document to address the unique features and legal implications created by the prefabrication process. The ConsensusDOCS 253 provides best practices and risk allocation when the owner purchases the prefabricated components<\/a> directly from the prefabricator.<\/p>\n\n\n\n

ConsensusDOCS 253 follows the risk allocation principles of the ConsensusDOCS 200 Standard Owner\/Constructor Agreement and General Terms and Conditions, allowing an Owner to contract directly with the Prefabricator with an \u201coff-the-shelf\u201d standard agreement. The contract document presumes the scenario wherein an Owner purchases a prefabricated component made at the prefabricator\u2019s site which is then delivered and installed at the worksite. The contract document includes:<\/p>\n\n\n\n